Are You Covered by the FSCS?

Financial Services Compensation Scheme

Written by Loot Updated over a week ago

Time to get serious. Loot accounts aren't covered by FSCS; FSCS is specific to UK banks. When you deposit your money with a bank, the bank can use the money to make investments, like lending it to others. Your actual cash isn't always in the bank all the time. If the bank goes bust, this could be a problem - and this is where the FSCS comes in. The FSCS ensures that you get your money back up to a certain level, and is backed by the government. We're not the experts in this, so check out their website for details.

Loot is different. We're not a bank. We are not allowed to invest or lend the money on your Loot card. This is a good thing as we, and our partners, are required by law to hold 100% of your cash till you want it. We don't lend it out. This means your cash on the Loot card is what's called "safeguarded". We have to make sure it's actually there, in a separate bank account we use. This also means the FSCS is actually not needed for Loot. It also means we're able to focus on making the product better and don't get distracted by all the lending and investment stuff.

So, if we go bust (which we hope never happens) all of our customer cash is held safely.